Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2023

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to ________

Commission file number: 001-41592

MGO GLOBAL INC.

(Exact name of registrant as specified in its charter)

Delaware		87-3929852
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

1515 SE 17th Street, Suite 121/#460236, Ft Lauderdale, FL		33346
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (347) 913-3316

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class		Trading Symbol(s)		Name of Each Exchange on Which Registered
Common Stock, par value $0.00001 per share		MGOL		The Nasdaq Stock Market LLC

Securities registered pursuant to Section 12(g) of the Act: None.

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes ☐ No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” “emerging growth company” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

As of August 11, 2023, there were 14,241,541 shares of common stock, par value $0.00001 per share, issued and outstanding.

MGO GLOBAL INC.

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PART I	FINANCIAL INFORMATION	5

ITEM 1.	FINANCIAL STATEMENTS:	5

	Condensed Consolidated Balance Sheets as of June 30, 2023 (unaudited) and December 31, 2022	5

	Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2023 and 2022 (unaudited)	6

	Condensed Consolidated Statements of Changes in Stockholders’ Equity (Deficit) for the Three and Six Months Ended June 30, 2023 and 2022 (unaudited)	7

	Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2023 and 2022 (unaudited)	8

	Notes to Condensed Consolidated Financial Statements (unaudited)	9

ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	19

ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	22

ITEM 4.	CONTROLS AND PROCEDURES	23

PART II		24

ITEM 1.	LEGAL PROCEEDINGS	24

ITEM 1A	RISK FACTORS	24

ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	24

ITEM 3.	DEFAULT UPON SENIOR SECURITIES	24

ITEM 4.	MINE SAFETY DISCLOSURES	24

ITEM 5.	OTHER INFORMATION	24

ITEM 6.	EXHIBITS	25

SIGNATURES		26

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NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements. Statements made in this report that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements, and should be evaluated as such. Investors are cautioned that such forward-looking statements are based on our management’s beliefs and assumptions and on information currently available to our management and involve risks and uncertainties. Forward-looking statements include statements regarding our plans, strategies, objectives, expectations and intentions, which are subject to change at any time at our discretion. Forward-looking statements include information concerning possible or assumed future results of operations, including descriptions of our business plan and strategies. Forward-looking statements include our assessment, from time to time of our competitive position, the industry environment, potential growth opportunities, the effects and events outside of our control, such as natural disasters, wars, epidemics or pandemics. Forward-looking statements often include words such as “anticipates,” “believes,” “could,” “forecast,” “estimates,” “expects,” “suggest,” “hopes,” “intends,” “may,” “might,” “plans,” “potential,” “predicts,” “targets,” “projects,” “projections,” “should,” “could,” “will,” “would” or the negative of these terms or other similar expressions.

Where, in any forward-looking statement, we express an expectation or belief as to future results or events, such expectation or belief is based on the current plans and expectations of our management, expressed in good faith and believed to have a reasonable basis. However, there can be no assurance that the expectation or belief will result or will be achieved or accomplished. The following include some, but not all, of the factors that could cause actual results or events to differ materially from those anticipated:

		current economic conditions, including consumer spending levels and the price elasticity of our products;

	·	the highly competitive and evolving nature of the industry in which we compete;

	·	our ability to successfully manage social, political, economic legal and other conditions affecting our operations and our supply chain sources, such as political instability and acts of war or terrorism, natural disasters, disruption of markets, operational disruptions, changes in import or export laws, currency restrictions and currency exchange rate fluctuations;

	·	the impact of the loss of one or more of our suppliers of finished goods or raw materials;

	·	our ability to manage our inventory effectively and reduce inventory reserves;

	·	our ability to optimize our global supply chain;

	·	our ability to distribute our products effectively through our ecommerce store and through our growing wholesale distribution channel;

	·	our ability to keep pace with changing consumer preferences;

	·	the impact of any inadequacy, interruption or failure with respect to our information technology or any data security breach;

	·	our ability to protect our reputation and the reputation and images of our licensed and any future proprietary brand(s);

	·	unanticipated changes in our tax rates or exposure to additional income tax liabilities or a change in our ability to realize deferred tax benefits;

	·	our ability to comply with environmental and other laws and regulations;

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	·	changes in our relationship with our employees and costs and adverse publicity from violations of labor or environmental laws by us or our suppliers;

	·	our ability to attract and retain key personnel; and

	·	our ability to integrate and grow potential acquisitions successfully.

Set forth below in Item 1A, “Risk Factors” of our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on March 31, 2023 are additional significant uncertainties and other factors affecting forward-looking statements. The reader should understand that the uncertainties and other factors listed above or identified elsewhere in this Quarterly Report and in our Annual Report are not a comprehensive list of all the uncertainties and other factors that may affect forward-looking statements. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We cannot guarantee future results, levels of activity, performance or achievements. We do not undertake any obligation to update or revise any forward-looking statements or the list of uncertainties and other factors that could affect those statements. You should, however, consult further disclosures and risk factors we include in Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports filed on Form 8-K.

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PART I – FINANCIAL INFORMATION

Item 1. Financial Statements.

MGO GLOBAL INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

	As of June 30,			As of December 31,
	2023			2022
Assets
Current assets:
Cash and cash equivalents	$	4,133,525		$	113,952
Accounts receivable		173,589			101,837
Other current assets		15,465			7,864
Prepaid royalty expense		53,372			147,769
Prepaid expenses		559,774			-
Inventories		303,864			69,546
Total current assets		5,239,589			440,968

Property and equipment, net		115,798			-
Total assets	$	5,355,387		$	440,968

Liabilities and stockholders’ equity (deficit)
Current liabilities:
Accounts payable	$	480,393		$	648,129
Accounts payable - related party		-			22,533
Accrued liabilities		201,293			52,540
Accrued payroll		164,238			764,050
Other current liabilities		-			13,634
Current portion of loan payable		-			10,793
Loan payable - related parties		-			123,850
Total current liabilities		845,924			1,635,529

Total liabilities		845,924			1,635,529

Commitments and contingencies		-			-

Stockholders’ equity (deficit):
Common stock, par value $0.00001, authorized 20,000,000 shares; 14,241,541 and 11,689,230 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively		142			117
Additional paid in capital		13,285,669			4,963,340
Accumulated deficit		(8,292,210	)		(5,796,636	)
Total MGO stockholders’ equity (deficit)		4,993,601			(833,179	)
Non-controlling interest		(484,138	)		(361,382	)
Total stockholder’s equity (deficit)		4,509,463			(1,194,561	)
Total liabilities and stockholders’ equity	$	5,355,387		$	440,968

See accompanying notes to these unaudited condensed consolidated financial statements.

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MGO GLOBAL INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

	For the Three Months Ended June 30, 2023			For the Three Months Ended June 30, 2022			For the Six Months Ended June 30, 2023			For the Six Months Ended June 30, 2022
Sales, net	$	1,950,938		$	96,835		$	2,285,639		$	195,912
Cost of goods sold		623,117			16,593			757,129			48,266
Gross profit		1,327,821			80,242			1,528,510			147,646
Operating expenses:
Royalty expenses		320,229			320,824			628,112			664,821
Selling, general and administrative expenses		2,433,478			464,835			3,528,640			760,415
Total operating expenses		2,753,707			785,659			4,156,752			1,425,236
Operating loss		(1,425,886	)		(705,417	)		(2,628,242	)		(1,277,590	)

Other (income) expenses:
Finance charges		645			99,374			11,656			102,571
Gain on settlement of debt		-			-			(3,500	)		-
Other (income) expense, net		(28,326	)		(273	)		(18,068	)		1,082
Total other (income) expenses		(27,681	)		99,101			(9,912	)		103,653
Loss before income taxes		(1,398,205	)		(804,518	)		(2,618,330	)		(1,381,243	)
Net loss	$	(1,398,205	)	$	(804,518	)	$	(2,618,330	)	$	(1,381,243	)
Less: net loss attributable to noncontrolling interest		(60,687	)		(83,858	)		(122,756	)		(149,513	)
Net loss attributable to MGO stockholders	$	(1,337,518	)	$	(720,660	)	$	(2,495,574	)	$	(1,231,730	)

Basic and diluted weighted average shares outstanding		14,241,541			10,351,833			13,928,734			10,091,319

Basic and diluted net loss per share to MGO stockholders	$	(0.09	)	$	(0.07	)	$	(0.18	)	$	(0.12	)

See accompanying notes to these unaudited condensed consolidated financial statements.

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MGO GLOBAL INC.

STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT)

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2023 AND 2022

(UNAUDITED)

															Total MGO						Total
									Additional						Stockholder’s			Non-			Stockholder’s
	Common Stock				Preferred Shares				Paid-In			Accumulated			Equity			controlling			Equity
	Shares		Amount		Shares		Amount		Capital			Deficit			(deficit)			Interests			(deficit)
Balance at December 31, 2021		9,593,000	$	96		-	$	-	$	2,866,559		$	(3,213,690	)	$	(347,036	)	$	(66,971	)	$	(414,007	)
Share issuance for cash		342,500		3		-		-		288,679			-			288,682			-			288,682
Net loss		-		-		-		-		-			(511,071	)		(511,071	)		(65,655	)		(576,725	)
Balance at March 31, 2022		9,935,500	$	99		-	$	-	$	3,155,238		$	(3,724,761	)	$	(569,425	)	$	(132,626	)	$	(702,050	)
Share issuance for cash		882,500		9		-		-		806,677			-			806,686			-			806,686
Warrants issued for financing expenses		-		-		-		-		85,686			-			85,686			-			85,686
Imputed interest		-		-		-		-		6,636			-			6,636			-			6,636
Net loss		-		-		-		-		-			(720,660	)		(720,660	)		(83,858	)		(804,518	)
Balance at June 30, 2022		10,818,000	$	108		-	$	-	$	4,054,240		$	(4,445,420	)	$	(391,073	)	$	(216,484	)	$	(607,557	)

Balance at December 31, 2022		11,689,230	$	117		-	$	-	$	4,963,340		$	(5,796,636	)	$	(833,179	)	$	(361,382	)	$	(1,194,561	)
Share issuance for cash		1,725,000		17		-		-		7,622,337			-			7,622,354			-			7,622,354
Cashless exercise of warrants		127,311		1		-		-		(1	)		-			-			-			-
Cash received from exercise of warrants		700,000		7		-		-		699,993			-			700,000			-			700,000
Net loss		-		-		-		-		-			(1,158,056	)		(1,188,056	)		(62,069	)		(1,220,125	)
Balance at March 31, 2023		14,241,541	$	142		-	$	-	$	13,285,669		$	(6,954,692	)	$	6,301,119		$	(423,451	)	$	5,907,668
Net loss		-		-		-		-		-			(1,337,518	)		(1,337,518	)		(60,687	)		(1,398,205	)
Balance at June 30, 2023		14,241,541	$	142		-	$	-	$	13,285,669		$	(8,292,210	)	$	4,993,600		$	(484,138	)	$	4,509,463

See accompanying notes to these unaudited condensed consolidated financial statements.

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MGO GLOBAL INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	For the Six Months Ended June 30,			For the Six Months Ended June 30,
	2023			2022
Cash flows from operating activities:
Net loss	$	(2,618,330	)	$	(1,381,243	)
Adjustments to reconcile net loss to net cash
used in operating activities:
Imputed interest		-			6,636
Warrants issued for financing expenses		-			85,686
Depreciation expenses		21,817			-
Net changes in operating assets & liabilities:
Accounts receivable		(71,752	)		(18,770	)
Inventories		(234,318	)		(21,909	)
Prepaid expenses		(559,774	)		-
Prepaid royalty expense		94,397			137,839
Other current assets		(7,601	)		-
Accounts payable - related party		(22,533	)		-
Accrued payroll		(599,812	)		-
Accounts payable and accrued liabilities		(28,422	)		236,333
Net cash used in operating activities		(4,026,327	)		(955,428	)

Cash flows from investing activities:
Purchases of property, plant, and equipment		(137,614	)		-
Net cash used in investing activities		(137,614	)		-

Cash flows from financing activities:
Shares issued for cash		7,622,354			1,095,371
Cash received from exercise of warrants		700,000			-
Repayment of loans payable - related party		(128,047	)		(3,026	)
Repayment of loans payable		(10,793	)		(36,341	)
Borrowings from loans payable - related party		-			13,489
Borrowings from loans payable					25,000
Net cash provided by financing activities		8,183,514			1,094,493

Net increase in cash and cash equivalents		4,019,573			139,065
Cash and cash equivalents at beginning of period		113,952			87,922
Cash and cash equivalents at end of period	$	4,133,525		$	226,987

See accompanying notes to these unaudited condensed consolidated financial statements.

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MGO GLOBAL INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2023 AND 2022

NOTE 1 - ORGANIZATION AND OPERATIONS

The Messi Store/MGOTEAM1 LLC

MGO Global, Inc. (“MGO”, “we”, “us”, “our”, or the “Company”) was formed on December 6, 2021, which operates through its subsidiary, MGOTEAM 1 LLC, which designs, manufactures, licenses, distributes, advertises and sells a range of products under the soccer legend Lionel (‘Leo”) Messi brand, “The Messi Brand”. The Messi Brand is a premium lifestyle brand with a sporty edge; products are primarily marketed and sold on the Company’s ecommerce site, The Messi Store, found at www.themessistore.com.

On October 29, 2018, the Company entered into a Trademark License Agreement with Leo Messi Management SL (“LMM”). LMM granted the Company a worldwide non-exclusive license in order to use Leo Messi’s Trademarks with the purpose of developing, manufacturing, trading and promoting The Messi Brand products.

On November 20, 2021, the Company entered into a new three-year Trademark License Agreement with LMM to have the worldwide license to use Leo Messi’s Trademarks for the purpose of developing, manufacturing, marketing and promoting The Messi Brand products. The Company is to pay LMM an amount of minimum guaranteed royalties totaling Four Million Euros (€4,000,000 ), net of taxes with the last payment due on November 15, 2024.

Stand Flagpoles/Americana Liberty, LLC

On March 13, 2023, we obtained a royalty-free, worldwide and exclusive license (the “License”) from the owner of Stand Co., LLC (“Stand”), who is an extended family member of MGO’s Chief Marketing Officer. The License provides for the use of certain assets of Stand for all purposes in exchange for payment of $1.00 by the Company. The License was entered into in connection with a potential acquisition by the Company of the assets related to the License. The term of the License commenced on March 15, 2023 and shall expire on the earlier of: 1) May 12, 2023, or 2) the date when the Company and Stand sign the definitive agreement for the acquisition of the assets. Licensed assets include all rights to all stock keeping units (“SKU”) of Stand sold under the names: “Roosevelt Premium 25 foot Telescoping Flag Pole Kit,” “20 Foot Telescoping Flag Pole Kit” and “LED Solar Flag Pole Light;” any intellectual property and other intangible property related to SKUs, including but not limited to all rights to a brand name “Stand Flagpoles,” domain and website standflagpoles.com, the Meta pages associated with Stand Flagpoles brand name (in Facebook and Instagram); all manufacturer, distributor and customer contracts and relationships for SKUs; marketing materials; any commercialization rights; domain and administrative access to Stand’s Shopify account, Facebook Assets & Accounts; all historical digital and non-digital assets; and customer database since inception.

In support of our new flagpole business, we formed a wholly owned subsidiary, Americana Liberty, LLC (“Americana Liberty”), on March 13, 2023, which was created to advertise and sell the licensed line of Stand Flagpoles and other related products, along with an expanding line of patriotic-themed products to be developed and marketed to consumers under our new Americana Liberty brand.

On May 11, 2023, we extended the License to December 31, 2023 in exchange for a 12-month consulting agreement with Jason Harward, the owner of Stand and nephew of Matt Harward, Chief Marketing Officer of the Company. The consultant shall furnish the Company with business continuity and consulting services. The services to be performed by the consultant under this agreement shall be requested in writing and agreed upon by both parties and shall be substantially similar to the following: providing general advice and counsel regarding establishment of systems and processes for direct-to-consumer (“DTC”) and ecommerce sales and operations; provide subject matter and product-level expertise in the area of flag-poles, flags, and related products; provide consultation regarding product sourcing and distribution; and assist with the establishment, operation, optimization, and maintenance of DTC and ecommerce platforms on behalf of the Company. Consultant will be compensated for services through a combination of cash or immediately available funds and restricted stock units or shares of the Company’s stock as follows: (1) cash or immediately available funds in the amount of $150,000 payable on September 30, 2023; (2) cash or immediately available funds in the amount of $200,000 payable no later than January 10, 2024, upon satisfactory performance of the consultant’s obligations under the agreement; and (3) 150,000 restricted stock units of the Company, to be issued on August 1, 2023 and are subject to vesting in equal quarterly installments throughout the term of the agreement commencing on January 31, 2024.

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

These unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and include all adjustments necessary for the fair presentation of the Company’s financial position for the periods presented.

The unaudited consolidated balance sheet as of June 30, 2023 was derived from the Company’s audited consolidated financial statements at that date. The accompanying unaudited consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements and related notes thereto for the year ended December 31, 2022 included in the Company’s Annual Report on Form 10-K filed by the Company with the Securities and Exchange Commission, or the SEC, on March 31, 2023, or the Annual Report. Interim results for the three and six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2023.

MGOTEAM 1, LLC (“MGO LLC”) was formed on October 11, 2018, and the Company entered into a Rollover Agreement by and among MGO LLC and members of MGO LLC on December 6, 2021. All of the members of MGO LLC, except for one member who owns a 11.82% membership interest in MGO LLC, exchanged all of their membership interests in MGO LLC for 8,818,000 shares of MGO’s common stock. The sole MGO LLC member which did not rollover his 11.82% membership interest in MGO LLC to MGO Global Inc. as of December 6, 2021 was due to the fact that the Company exhausted all reasonable means to locate and/or contact the member and has yet to locate him. Efforts are still ongoing to locate and contact the MGO LLC member.

We account for that remaining minority interest in MGO LLC as non-controlling interest. Both the Company and MGO LLC were under common control, the series of contractual arrangements between the Company and MGO LLC on December 6, 2021 constituted a reorganization under common control and are required to be retrospectively applied to the consolidated financial statements at their historical amounts. The consolidated financial statements have been prepared as if the existing corporate structure had been in existence throughout all periods. This includes a retrospective presentation for all equity related disclosures, including issued shares and earnings per share, which have been revised to reflect the effects of the reorganization in accordance with ASC 250 as of December 31, 2021 and 2020. ASC 250 requires that a change in the reporting entity from reorganization entities under common control, be retrospectively applied to the financials statements of all prior periods when the financial statements are issued for a period that includes the date the change in reporting entity of the transaction occurred.

Principles of Consolidation

The unaudited condensed consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter-company transactions and balances have been eliminated in consolidation. The equity method of accounting is used for joint ventures and investments in Shanghai Celebrity International Trading Co., Ltd (SCIT) which the Company has significant influence but does not have effective control.

Use of Estimates

The preparation of the unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the footnotes thereto. Actual results could differ from those estimates. It is reasonably possible that changes in estimates will occur in the near term.

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Cash and Cash Equivalents

Cash equivalents consist of highly liquid investments with maturities of three months or less when purchased. The Company maintains its cash with high credit quality financial institutions; at times, such balances with any one financial institution may exceed Federal Deposit Insurance Corporation (“FDIC”) insured limits. As of June 30, 2023, the Company had a $1,250,000 certificate of deposit in a financial institution with a three-month term and an interest rate of 3.92%. As of December 31, 2022, the Company had no cash in a certificate of deposit.

Accounts Receivable

Accounts receivables are carried at their estimated collectible amounts, net of any estimated allowances for doubtful accounts. We grant unsecured credit to our customers deemed credit worthy. Ongoing credit evaluations are performed and potential credit losses estimated by management are charged to operations on a regular basis. At the time any particular account receivable is deemed uncollectible, the balance is charged to the allowance for doubtful accounts. As of June 30, 2023 and December 31, 2022, the Company had no allowance for doubtful accounts.

Inventory

Inventory consists of raw materials and finished goods ready for sale and is stated at the lower of cost or net realizable value. We value inventories using the weighted average costing method. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. We regularly review inventory and consider forecasts of future demand, market conditions and product obsolescence. If the estimated realized value of our inventory is less than cost, we make provisions in order to reduce the carrying value to its estimated net realizable value.

Prepaid Royalty Expense

The Company pays €500,000 every five months in accordance with the Trademark License Agreement payment schedule with LMM signed on November 20, 2021. The Company records each installment payment as prepaid expense and amortized over the license period granted by LMM. See Note 10.

Property and Equipment, net

Plant and equipment are stated at cost less accumulated depreciation and impairment. Depreciation of property, plant and equipment and are calculated on the straight-line method over their estimated useful lives or lease terms generally as follows:

Classification	Useful Life
Computer	3 years
Equipment	3 years
Internal use software	3 years

Revenue Recognition

	·	For the six months ended June 30, 2023, the Company sold $2,241,113 directly to consumers via our website and $44,526 to wholesale and other customers.
	·	For the six months ended June 30, 2022, the Company sold $140,010 directly to consumers via our website and $55,902 to wholesale and other customers.

The Messi Store/MGOTEAM1, LLC

The Company recognizes revenues when its customer obtains control of promised goods or services, in an amount that reflects the consideration which it expects to receive in exchange for those goods. The Company recognizes revenues following the five-step model prescribed under ASU No. 2014-09: (i) identify contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenues when (or as) we satisfy the performance obligation.

Revenue transactions associated with the sale of the Messi Brand products comprise a single performance obligation, which consists of the sale of products to customers either through direct wholesale or online sales through our website www.themessistore.com. We satisfy the performance obligation and record revenues when transfer of control to the customer has occurred, based on the terms of sale. A customer is considered to have control once they are able to direct the use and receive substantially all of the benefits of the product. Control is transferred to wholesale customers upon shipment or upon receipt depending on the country of the sale and the agreement with the customer. Control transfers to online customers at the time upon shipment. The transactions price is determined based upon the invoiced sales price, less anticipated sales returns, discounts and miscellaneous claims from customers. Payment terms for wholesale transactions depend on the country of sale or agreement with the customer and payment is generally required within 30 days or less of shipment to or receipt by the wholesale customer. Payment is due at the time of sale for direct wholesale and online transactions.

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We sold our Messi Brand products direct to consumers through The Messi Store ecommerce website we operate and through The Messi Store mobile app; and we sold products to wholesale customers.

Stand Flagpoles/Americana Liberty,LLC

Our residential flagpoles and related products are sold direct to consumers through the Stand Flagpole website pursuant to our license agreement with Stand, dated March 13, 2023. Revenue transactions associated with the sale of Stand Flagpole products comprise a single performance obligation, which consists of the sale of products to customers through online sales through the website www.standflagpoles.com. We satisfy the performance obligation and record revenues when transfer of control to the customer has occurred. A customer is considered to have control once they are able to direct the use and receive substantially all of the benefits of the product. Control is transferred to wholesale customers upon shipment or upon receipt depending on the country of the sale and the agreement with the customer. Control transfers to online customers at the time upon shipment. The transactions price is determined based upon the invoiced sales price, less anticipated sales returns, discounts and miscellaneous claims from customers. Payment is due at the time of sale for online transactions.

A principal obtains control over any one of the following (ASC 606-10-55-37A):

	a.	A good or another asset from the other party which the entity then transfers to the customer. Note that momentary control before transfer to the customer may not qualify.
	b.	A right to a service to be performed by the other party, which gives the entity the ability to direct that party to provide the service to the customer on the entity’s behalf.
	c.	A good or service from the other party that it then combines with other goods or services in providing the specified good or service to the customer.

If the entity obtains control over one of the above before the good or service is transferred to a customer, the entity could be considered a principal. We are the principal for both the Messi Brand products and Stand Flagpole products because we are primarily responsible for fulfilling the promise to provide the specified good or service, incurred risk before the specified good or service have been transferred to a customer or after transfer of control to the customer, and have discretion in establishing the price our customer pays for the specified goods or services.

Non-controlling Interest

One member did not rollover his 11.82% membership interest from MGO LLC to MGO as of December 6, 2021 after the Company exhausted all reasonable means to locate and/or contact the member and has yet to locate him. Efforts are still ongoing to locate and contact the member. According to ASC 810-10-45-22 through 810-10-45-24, carrying amount of the NCI will be adjusted to reflect the change in the NCI’s ownership interest in the subsidiary. Any difference between the amount by which the NCI is adjusted and the fair value of the consideration paid or received is recognized in equity/APIC and attributed to the equity holders of the parent in accordance with ASC 810-10-45-23. The Company accounted for this portion of shares as non-controlling interest as of December 6, 2021 for $12,598. The Company recorded non-controlling interest of $(60,687) and $(83,858) from the net loss for the three months ended June 30, 2023 and 2022, respectively. The Company recorded non-controlling interest of $(122,756) and $(149,513) from the net loss for the six months ended June 30, 2023 and 2022, respectively.

Foreign Currency

For all operations, gains or losses from remeasuring foreign currency transactions into the functional currency are included in the statements of operations as finance charges.

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Segment Reporting

The Company has two reportable segments: 1) The Messi Store, which is operated by our wholly owned subsidiary MGOTEAM1, LLC, which markets and sells a range of products under the soccer legend Lionel Messi brand, the “Messi Brand;” and 2) Stand Flagpoles, which is operated by our wholly owned subsidiary Americana Liberty, LLC, which markets and sells a range of residential flagpoles and related products direct to consumers. The chief operating decision maker is responsible for allocating resources and assessing performance and obtains financial information, being the consolidated statements of operations, consolidated balance sheets and consolidated statements of cash flow, about the Company as a whole.

Income Taxes

The Company accounts for income taxes using the asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. In estimating future tax consequences, the Company generally considers all expected future events other than enactments of changes in the tax law. For deferred tax assets, management evaluates the probability of realizing the future benefits of such assets. The Company establishes valuation allowances for its deferred tax assets when evidence suggests it is unlikely that the assets will be fully realized.

The Company recognizes the tax effects of an uncertain tax position only if it is more likely than not to be sustained based solely on its technical merits as of the reporting date and then only in an amount more likely than not to be sustained upon review by the tax authorities. Income tax positions that previously failed to meet the more likely than not threshold is recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more likely than not threshold is derecognized in the first subsequent financial reporting period in which that threshold is no longer met. The Company classifies potential accrued interest and penalties related to unrecognized tax benefits within the accompanying consolidated statements of operations and comprehensive income (loss) as income tax expense.

New Accounting Pronouncements

In June 2016, the FASB issued ASU No. 2016-13, (Topic 326), Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments which amends the current accounting guidance and requires the use of the new forward-looking “expected loss” model, rather than the “incurred loss” model, which requires all expected losses to be determined based on historical experience, current conditions and reasonable and supportable forecasts. This guidance amends the accounting for credit losses for most financial assets and certain other instruments including trade and other receivables, held-to-maturity debt securities, loans and other instruments. In November 2019, the FASB issued ASU No. 2019-10 to postpone the effective date of ASU No. 2016-13 for public business entities eligible to be smaller reporting companies defined by the SEC to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company adopted ASU No. 2016-13 and did have a material impact on its financial position and results of operations.

In August 2020, the FASB issued ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, to improve financial reporting associated with accounting for convertible instruments and contracts in an entity’s own equity. ASU 2020-06 will be effective for the Company after December 15, 2023. The Company does not expect the adoption will have any significant impact on the Company’s consolidated financial statements.

Management does not believe that any recently issued, but not yet effective, accounting standards could have a material effect on the accompanying financial statements. As new accounting pronouncements are issued, we will adopt those that are applicable under the circumstances.

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NOTE 3 – BALANCE SHEET ITEMS

Inventory

As of June 30, 2023 and December 31, 2022, inventory amounted to $303,864 and $69,546, respectively.

		June 30, 2023				December 31, 2022
Finished goods		$	303,864			$	69,546

Prepaid Expenses

As of June 30, 2023 and December 31, 2022, prepaid expenses amounted to $559,774 and $0, respectively.

	June 30, 2023		December 31, 2022
Prepaid inventory	$	317,253	$	-
Prepaid insurance		189,188		-
Others		53,333		-
Total	$	559,774	$	-

Accounts Payable and Accrued Liabilities (Including Related Parties)

Accounts payable and accrued liabilities were $681,686 and $723,202 as of June 30, 2023 and December 31, 2022, respectively. Accounts payable are mainly payables to vendors and accrued liabilities consisting of mainly credit card payable and sales and VAT tax payable.

	June 30, 2023		December 31, 2022
Accounts payable	$	332,719	$	275,551
Warehouse rent payable		26,082		78,673
Legal payable		-		316,438
Insurance payable		121,592		-
Accrued liabilities		201,293		52,540
Total accounts payable and accrued liabilities:	$	681,686	$	723,202

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In January 2023, the Company entered into a financing agreement for D&O insurance with BankDirect at an interest rate of 6%, a principal balance of $284,775 and a monthly payment of $32,438 over the nine-month term of the promissory note. This loan will mature on November 3, 2023. The balance as of June 30, 2023 of this note payable was $121,592 and recorded under accounts payable on the balance sheet.

NOTE 4 – LOAN PAYABLE

On May 25, 2022, the Company entered into a loan with PayPal with an interest rate of 6.51% and principal balance of $25,000 and monthly payment of $539 over the term of the loan. This loan will mature on May 25, 2023. The Company paid principal balance of $10,793 during the six months ended June 30, 2023. The balance as of June 30, 2023 of this loan was $0.

	June 30, 2023		December 31, 2022
Current portion of loans payable	$	-	$	10,793
Non-current portion of loans payable	$	-	$	-

NOTE 5 – RELATED PARTY TRANSACTIONS

The Company borrowed $45,556 from and paid $24,976 to our Chairman and CEO, Maximiliano Ojeda, for the year ended December 31, 2022. The Company borrowed $0 and paid $128,047 to Mr. Ojeda, Mr. Groves, and Ms. Hilfiger for the six months ended June 30, 2023. This borrowing does not have a fixed maturity date or stated rate of interest. As of June 30, 2023 and December 31, 2022, the balance of loans payable to Mr. Ojeda, Mr. Groves and Ms. Hilfiger was $0 and $123,850, respectively.

The accounts payable owed to our Chairman and CEO as of June 30, 2023 and December 31, 2022 were $0 and $22,533, respectively.

On May 11, 2023, we extended the Stand Flagpoles License to December 31, 2023 in exchange for a 12-month consulting agreement with Jason Harward, the owner of Stand and nephew of Matt Harward, Chief Marketing Officer of the Company. The consultant shall furnish the Company with business continuity and consulting services. The services to be performed by the consultant under this agreement shall be requested in writing and agreed upon by both parties and shall be substantially similar to the following: providing general advice and counsel regarding establishment of systems and processes for direct-to-consumer (“DTC”) and ecommerce sales and operations; provide subject matter and product-level expertise in the area of flag-poles, flags, and related products; provide consultation regarding product sourcing and distribution; and assist with the establishment, operation, optimization, and maintenance of DTC and ecommerce platforms on behalf of the Company. Consultant will be compensated for services through a combination of cash or immediately available funds and restricted stock units or shares of the Company’s stock as follows: (1) cash or immediately available funds in the amount of $150,000 payable on September 30, 2023; (2) cash or immediately available funds in the amount of $200,000 payable no later than January 10, 2024, upon satisfactory performance of the consultant’s obligations under the agreement; and (3) 150,000 restricted stock units of the Company to be issued on August 1, 2023 and are subject to vesting in equal quarterly installments throughout the term of the agreement commencing on January 31, 2024.

NOTE 6 – STOCKHOLDERS’ DEFICIT

Common Stock

On January 12, 2023, the Company entered into an underwriting agreement (the “Underwriting Agreement”) with Boustead Securities, LLC, as representative of the underwriters, relating to the Company’s initial public offering (the “Offering”) of 1,725,000 shares (the “Shares”) of the Company’s common stock, par value $0.00001 per share (“common stock”), which included the exercise by the underwriters in full of the over-allotment option to purchase an additional 225,000 shares of the Company’s common stock, at an Offering price of $5.00 per share. Pursuant to the Underwriting Agreement, in exchange for the Representative’s firm commitment to purchase the Shares, the Company agreed to sell the Shares to the Representative at a purchase price of $4.65 (93% of the public offering price per Share of $5.00) and issue the underwriters three year warrants to purchase an aggregate of 86,250 shares of the Company’s common stock, which is equal to five percent (5%) of the Shares sold in the Offering. Such warrants have an exercise price of $6.25, which is equal to 125% of the Offering price (the “Warrant”).

The Shares were offered and sold pursuant to the Company’s Registration Statement on Form S-1 (File No. 333-268484), as amended (the “Registration Statement”), and filed with the Securities and Exchange Commission (the “Commission”) and the final prospectus filed with the Commission pursuant to Rule 424(b)(4) of the Securities Act of 1933, as amended (the “Securities Act”). The Registration Statement was declared effective by the Commission on January 12, 2023. The closing of the Offering for the Shares took place on January 18, 2023 with net proceeds of $7,622,355, which included 225,000 shares sold by the Company upon the exercise by the underwriters of the over-allotment option in full. The Company intends to use the net proceeds from the Offering for team expansion, marketing, general and administrative corporate purposes, including working capital and capital expenditures.

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In January 2023, the Company issued 700,000 shares to the Pre-IPO funding investors from the exercise of their warrants at fair value of $1 per share.

In January 2023, the Company issued 127,311 shares to Boustead Securities, LLC as a result of the cashless exercise of their 164,475 warrants.

On January 13, 2023, in connection with the Offering, the Company commenced trading on The Nasdaq Capital Market under ticker symbol “MGOL.”

Warrants

In January 2023, the Company issued 700,000 shares to the Pre-IPO funding investors in connection with the exercise of their warrants at fair value of $1 per share.

In January 2023, the Company issued 127,311 shares to Boustead Securities, LLC as a result of the cashless exercise of their 164,475 warrants.

The following is a summary of warrant activity.

	Number of Warrants			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value
Outstanding, December 31, 2022		938,000		$	1.00		3.73	$	—
Issued		86,250			1.00		5.00		—
Forfeited		—			—		—		—
Exercised		(864,475	)		—		—		—
Outstanding, June 30, 2023		159,775		$	1.00		4.14	$	—
Exercisable, June 30, 2023		159,775		$	1.00		4.14	$	—

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The Company utilizes the Black-Scholes model to value its warrants. The Company utilized the following assumptions:

	For the Six Months Ended June 30, 2023
Expected term	5 years
Stock price	$	1.00
Exercise price	$	1.00
Expected average volatility	328% - 339 %
Expected dividend yield		-
Risk-free interest rate	1.76% - 2.89 %

NOTE 7 –PREPAID ROYALTY EXPENSE

On October 29, 2018, the Company entered into a Trademark License Agreement with Leo Messi Management SL (LMM) to have the right to license the Licensed Mark. Both parties agreed to cancel the original Trademark License Agreement due to COVID-19 in 2021 and both parties were released from the obligations and responsibilities under the original Trademark License Agreement. The Company recorded the actual royalty expense paid on or before the new agreement in November 2021 since both parties agreed to waive the original payment schedule in the 2018 Trademark License agreement.

On November 20, 2021, the Company entered into a new three-year Trademark License Agreement (“New Trademark License Agreement”) with Leo Messi Management SL (LMM) to have the worldwide license to use Leo Messi’s Trademarks for the purpose of developing, manufacturing, marketing, and promoting products under the Company’s “Messi Brand.” The Company is to pay LMM a minimum guaranteed amount of royalties in installments, amounting to Four Million Euros (€4,000,000 ), net of taxes, with the final payment due on November 15, 2024.

The Company recorded $320,229 and $320,824 royalty expense for the three months ended June 30, 2023 and 2022, respectively. The Company recorded $628,112 and $664,821 royalty expense for the six months ended June 30, 2023 and 2022, respectively. The prepaid expense as of June 30, 2023 and December 31, 2022 was $53,372 and $147,769, respectively.

As of June 30, 2023, the Company has paid LMM royalty payments, in aggregate, equal to Two Million Euros (€2,000,000) pursuant to the terms of the New Trademark License Agreement.

The following table presents the future royalty payments of the Trademark License Agreement based on exchange rate as of June 30, 2023:

Fiscal year ending December 31,	Amount
		US Dollars	Euros
2023	$	546,000	(€500,000)
2024		1,638,000	(€1,500,000)
Total	$	2,184,000	(€2,000,000)

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NOTE 8 – LEASES

On February 20, 2023, we signed a renewable one-year lease for a building located at 813 NE 17^th Terrace, Fort Lauderdale, Florida 33304, providing for approximately 2,300 square feet of space for office use by our executives and personnel based in South Florida. We determined this is a short-term lease so no right-of-use assets to be recognized as of June 30, 2023.

NOTE 9 – RISKS AND UNCERTAINTIES

The Company is subject to credit, liquidity, and market risks, as well as other payment-related risks such as risks associated with the fraudulent use of credit or debit cards and customer banking information, which could have adverse effects on our business and revenues due to chargebacks from customers.

NOTE 10 – SEGMENT INFORMATION

Non-allocated administrative and other expenses are reflected in Corporate. Corporate assets include cash, prepaid expenses, notes receivable and other assets.

As of June 30, 2023 and December 31, 2022, and for the three and six months ended June 30, 2023 and 2022, respectively, information about the Company’s reportable segments consisted of the following:

Assets

	Corporate		The Messi Store		Stand Flagpoles		Total
As of June 30, 2023
Assets	$	4,188,327	$	341,046	$	826,014	$	5,355,387
As of December 31, 2022
Assets	$	32,275	$	408,693	$	-	$	440,968

Net (Loss) Income

	Corporate			The Messi Store			Stand Flagpoles			Total
Three Months Ended June 30, 2023
Revenues	$	-		$	226,645		$	1,724,293		$	1,950,938
Cost of sales		-			114,256			508,861			623,117
Loss from operations		(764,210	)		(513,501	)		(148,175	)		(1,425,886	)
Other (income) expense, net		(26,124	)		(1,557	)		-			(27,681	)
Net income (loss)	$	(738,086	)	$	(511,944	)	$	(148,175	)	$	(1,398,205	)

Three Months Ended June 30, 2022
Revenues	$	-		$	96,835		$	-		$	96,835
Cost of sales		-			16,593			-			16,593
Loss from operations		(30,909	)		(674,508	)		-			(705,417	)
Other (income) expense, net		92,322			6,779			-			99,101
Net income (loss)	$	(123,231	)	$	(681,287	)	$	-		$	(804,518	)

	Corporate			The Messi Store			Stand Flagpoles			Total
Six Months Ended June 30, 2023
Revenues	$	-		$	516,199		$	1,769,440		$	2,285,639
Cost of sales		-			230,659			526,470			757,129
Income (loss) from operations		(1,467,311	)		(1,021,294	)		(139,637	)		(2,628,241	)
Other (income) expense, net		(25,680	)		15,768			-			(9,911	)
Net income (loss)	$	(1,441,631	)	$	(1,037,062	)	$	(139,637	)	$	(2,618,330	)

Six Months Ended June 30, 2022
Revenues	$	-		$	195,912		$	-		$	195,912
Cost of sales		-			48,266			-			48,266
Loss from operations		(52,179	)		(1,225,410	)		-			(1,277,589	)
Other (income) expense, net		92,322			11,332			-			103,654
Net income (loss)	$	(144,501	)	$	(1,236,742	)	$	-		$	(1,381,243	)

NOTE 11 – SUBSEQUENT EVENTS

On August 1, 2023, the Company granted 1,355,000 stock options and 290,000 restricted stock units (“RSU”) to specific officers, members of the Board of Directors, employees, independent contractors and our consultant in accordance with the terms of their respective agreements. Upon vesting each RSU will be converted into one (1) share of common stock of the Company. The stock options and RSU’s have various vesting periods. Stock options can be exercised at $5.00 per share until January 12, 2028. The Company will begin to recognize stock compensation expense beginning from the date of grant.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion highlights the principal factors that have affected our financial condition and results of operations as well as our liquidity and capital resources for the periods described. This discussion should be read in conjunction with our consolidated financial statements and the related notes included in this Quarterly Report on Form 10-Q and with our audited consolidated financial statements included in our 2022 Annual Report on Form 10-K, filed with the U.S. Securities and Exchange Commission on March 31, 2023. As discussed in the section titled “Note Regarding Forward-Looking Statements,” the following discussion and analysis contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements.

Overview

Founded in October 2018 and headquartered in Florida with remote employees and specialty contractors in London, New York and Latin America, MGO Global Inc. (“MGO,”, “MGO Global”, the “Company,” “we,” “our,” and “us”) is a performance-driven lifestyle brand portfolio company focused on direct-to-consumer (“DTC”) digital commerce.

Not new to building successful global lifestyle brands, MGO’s accomplished leadership team encompasses decades of experience in fashion design, marketing, technology, corporate finance and branding. Our design team continues to push innovation and evolution of the product cycle without compromising quality and design integrity. We believe that our management’s executive-level expertise in marketing technology will empower MGO to play an important role in defining the next generation of DTC digital commerce. Our finance and accounting team is tasked with ensuring that responsible decision making is informed by our commitment to maintaining economic stability and focus on strategic growth.

With a deep understanding of analytics, personality-driven trust and algorithm-driven distribution, our marketing team is uniquely equipped to leverage emerging technologies, such as machine learning and Artificial Intelligence (“AI”), to build brands efficiently and cost-effectively with a small core team of specialists. Through our end-to-end, scalable brand-building platform, backed by robust consumer behavioral data, we are intent on building digitally native brands that thrive in the modern DTC economy.

In 2018, MGO signed a global licensing agreement with soccer player Lionel Messi and created the “Messi Brand” - a line of casual wear and accessories inspired by his trend-setting style and offered on The Messi Store. The brand’s design focus is on accessibility and ease, much like Messi’s personal style. While this has been the only asset in our portfolio through 2022, our business model is centered on strategic expansion through collaborations, licensing, acquisitions, and organic development. We intend to drive the commercial value of each brand within our portfolio through our own DTC platform methodologies, ensuring that each brand maintains its own unique identity while remaining thoughtfully aligned with the values of its customers.

In March 2023, MGO obtained a royalty-free, worldwide and exclusive license to the assets of Stand CO, LLC, a direct-to-consumer (“DTC”), digitally-native brand which offers a line of high quality, residential flagpoles, American flags, solar flagpole light kits, flagpole finials, patriotic-themed apparel and other products. The Company’s management believes that the addition of the Stand Flagpoles brand to MGO’s brand portfolio brings the Company immediate revenue generation and the opportunity to further demonstrate the benefits of its end-to-end, data-driven brand-building platform to help accelerate and optimize long-term growth. In late March 2023, the Company formed Americana Liberty, LLC, a wholly owned subsidiary focused exclusively on supporting the new DTC flagpole and related product line.

Guided by the Company’s expertise and fueled by our team’s passion to ultimately grow MGO into a major lifestyle brand portfolio company and its brands into universally recognized symbols of excellence, MGO is committed to exceeding its partners’ and customers’ expectations by creating and delivering innovative, premium lifestyle clothing and consumer products and earning lifetime fidelity to our DTC brands through high-touch customer engagement, service and attention.

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Results of Operations for Three and Six Months Ended June 30, 2023 as Compared to Three and Six Months Ended June 30, 2022

Revenues

For the three-month period ended June 30, 2023, revenues climbed 1914% to $1,950,938, up from $96,835 for the comparable three-month period in 2022. Revenues generated from sales of Messi Brand apparel, accessories and homewares through our MGOTEAM1, LLC subsidiary totaled $226,645 for the three months ended June 30,2023 representing an increase of 134% when compared to revenues of $96,835 reported for the same three months in 2022. Revenues contributed from sales of our Stand Flagpoles products through our Americana Liberty, LLC subsidiary totaled $1,724,293 for the three-month period ended June 30, 2023, compared to $0 for the three months ended June 30, 2022.

For the six months ended June 30, 2023, revenues increased 1067% to $2,285,639, which compared to $195,912 for the six months ended June 30, 2022. On a segmented basis, revenues from The Messi Store/MGOTEAM1, LLC totaled $516,199, representing an increase of 164% over revenues of $195,912 for the six-month period ended June 30, 2022. Revenues from Stand Flagpoles/Americana Liberty, LLC totaled $1,769,440 for the six months ended June 30, 2023 compared to $0 for the same six-month reporting period in the prior year.

Cost of Sales and Gross Profit

Cost of goods sold for the three months ended June 30, 2023 rose 3655% to $623,117 compared to cost of goods sold which totaled $16,593 for the three months ended June 30, 2022. This resulted in a gross profit of $1,327,821 for the three months ended June 30, 2023, compared to $80,242 for the same three-month period in 2022. The 1555% increase in profit margin was attributable to the expansion and diversity of products sold in the second quarter of 2023, which included the addition of our new flagpole and related products licensed from Stand Co. in March 2023.

For the aforementioned reasons, cost of goods sold for the six months ended June 30, 2023 rose 1469% to $757,129 as compared to cost of goods sold of $48,266 reported for the same six-month period in the previous year. Gross profit also increased, rising 935% to $1,528,510 from $147,646 for the six months ended June 30, 2023 and 2022, respectively.

Operating Expenses

For the three months ended June 30, 2023, total operating expenses climbed 251% to $2,753,707 as compared to total operating expenses of $785,659 for the three months ended June 30, 2022, due primarily to a 424% increase in selling, general and administrative expenses. Likewise, for the six months ended June 30, 2023, total operating expenses increased 192% to $4,156,752 compared to total operating expenses of $1,425,236 reported for the same six-month period in 2022.

The overall increase for the first half of 2023 was largely attributable to higher selling, general and administrative expenses associated with the Company’s workforce expansion, amounting to $1,049,398 compared to $248,990 in the first six months of 2022; as well as increased sales and marketing expenses amounting to $1,776,359 in the six months of 2023 compared to $234,066 for the first half of the prior year. The Company also incurred costs associated with becoming a publicly traded company in January 2023, which totaled $210,928 for the six months ended June 30, 2023.

Other (Income) Expenses

Total other income for the three months ended June 30 2023 was $27, 681 compared to total other expenses of $99,101 for the three months ended June 30, 2022. The improvement was primarily due to the remeasurement of foreign currency transactions into U.S. dollars and recorded as finance charges. In addition, other expenses included accounting for imputed interest in connection with personal loans made to the Company by related parties, offset by a gain on settlement of debt with related parties.

For the six months ended June 30, 2023 and 2022, total other income was $9,219, which compared to total other expense of $103,653, respectively, for the aforementioned reasons.

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Net Loss

After factoring the net loss attributable to noncontrolling interest of $60,687 for the three months ended June 30, 2023, net loss increased 86% to $1,337,518, or $0.09 loss per share; as compared to a net loss after factoring the net loss attributable to noncontrolling interest of $83,858, of $720,660, or $0.07 loss per share, for the three months ended June 30, 2022.

For the six months ended June 30, 2023, net loss totaled $2,495,574, or $0.18 loss per share after accounting for a net loss attributable to noncontrolling interest of $122,756. This compared to a net loss of $1,231,730, or $0.12 loss per share, for the first six months of 2022 after factoring a net loss attributable to non-controlling interest of $149,513.

Cash Flows

As of June 30, 2023, cash on hand was $4,133,525, as compared to $113,952 as of December 31, 2022, an increase of 3527%. The increase was attributable to completion of the Company’s Initial Public Offering on January 18, 2023, resulting in net proceeds of $7,239,855, which is net of offering expenses of $1,385,145. Until such time that the Company fully implements its growth strategy, it expects to continue to generate operating losses in the foreseeable future, primarily due to higher corporate overhead, higher marketing and inventory expenses and the costs of being a public company.

For the six months ended June 30, 2023, cash used in operations was $4,026,327, an increase of 321,4%, as compared to cash used of $955,428 for the six months ended June 30, 2022. The increase in cash used in operations during the first six months of 2023 was principally due to higher prepaid expenses, as well as higher accounts receivable, higher inventory expense and the accounting for accrued payroll and accounts payable to members of our senior leadership team, which was all offset by higher prepaid royalty expense to Leo Messi Management and accounts payable and accrued liabilities recorded for the six months ended June 30, 2022.

For the six months ended June 30, 2023, cash used in investing activities was $137,614, which compared to $0 for the six months ended June 30, 2022. The 100% increase was due to purchases of office equipment, furniture and other necessities to equip the Company’s corporate office.

For the six months ended June 30, 2023, cash provided by financing activities was $8,183,514, an increase of 648% as compared to cash provided by financing activities of $1,094,493 recorded for the six months ended June 30, 2022. The increase was directly related to the completion of the Company’s IPO in January 2023 offset by repayment of loans payable to related and non-related parties.

Liquidity and Capital Resources

As of June 30, 2023, we had working capital of $4,393,665. For the six months ended June 30, 2023, we incurred a loss from operations of $2,628,242, inclusive of $628,112 for royalty expenses and $3,528,640 for selling, general and administrative expenses, including higher selling and digital marketing costs, payroll expenses, third-party logistics services, professional fees and rent expense for office space. This compared to a loss from operations of $1,277,590, inclusive of $664,821 for royalty payments and $760,415 for selling, general and administrative expenses, including payroll expenses, third-party logistics services and general corporate overhead. In consideration of completing our IPO in January 2023, from which we raised gross proceeds of $8,625,000, prior to deducting underwriting discounts, commissions and offering expenses, we believe the cash on hand, in connection with cash generated from revenue, will be sufficient to fund the next 12 months of operations, though there can be no guarantee. In addition, we intend to pursue other opportunities for raising capital with outside investors.

The Company has continued to realize losses from operations. However, because of our capital raise efforts, including completing our IPO in January 2023, coupled with continued revenue growth, we believe that we will have sufficient cash to meet our anticipated operating costs and capital expenditure requirements through December 2023. Our primary need for liquidity is to fund working capital requirements of our business, capital expenditures and for general corporate purposes. Our ability to fund our operations, to make planned capital expenditures, and to repay or refinance indebtedness depends on our future operating performance and cash flows, which are subject to prevailing economic conditions and financial, business and other factors, some of which are beyond our control.

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If the Company is unable to generate significant sales growth in the near term and raise additional capital, there is a risk that the Company could default on additional obligations; and could be required to discontinue or significantly reduce the scope of its operations if no other means of financing operations are available. The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amount and classification of liabilities or any other adjustment that might be necessary should the Company be unable to continue as a going concern.

Critical Accounting Policies, Significant Judgments, and Use of Estimates

Our management’s discussion and analysis of our financial condition and results of operations are based on our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The preparation of these consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amount of revenues and expenses during the reporting period. Our most critical estimates include those related to revenue recognition, inventories and reserves for excess and obsolescence, accounting for stock-based awards, and income taxes. On an ongoing basis, we evaluate our estimates and assumptions. We base our estimates on historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Our actual results may differ from these estimates under different assumptions or conditions.

For the six months ended June 30, 2023, there were no significant changes to our existing critical accounting policies which are included in the Company’s Annual Report on the Form 10-K for the year ended December 31, 2022.

Off-Balance Sheet Arrangements

On June 30, 2023, we did not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenue or expenses, results of operations, liquidity, capital expenditures or capital resources. Since our inception, except for standard operating leases, we have not engaged in any off-balance sheet arrangements, including the use of structured finance, special purpose entities or variable interest entities. We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to stockholders.

Inflation

Over the past 18 months, inflation has adversely affected our business, financial condition, and results of operations by increasing our overall cost structure, and such affects will be further exacerbated if we are unable to achieve commensurate increases in the prices we charge our customers. The existence of inflation in the economy has resulted in, and may continue to result in, higher interest rates and capital costs, shipping costs, supply shortages, increased costs of labor, weakening exchange rates, and other similar effects. As a result of inflation, we have experienced and may continue to experience, cost increases. In addition, poor economic and market conditions, including a potential recession, may negatively impact market sentiment, decreasing the demand for sportswear and outerwear, which would adversely affect our operating income and results of operations. If we are unable to take effective measures in a timely manner to mitigate the impact of inflation, as well as a potential recession, our business, financial condition and results of operations could be adversely affected.

Climate Change

Our opinion is that neither climate change, nor governmental regulations related to climate change, have had, or are expected to have, any material effect on our operations.

New Accounting Pronouncements

There were certain updates recently issued by the Financial Accounting Standards Board (“FASB”), most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to a have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, we are not required to provide information required by this Item.

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ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure and Control Procedures

As of the end of the period covered by this Quarterly Report on Form 10-Q, we conducted an evaluation, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, of our disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) of the Exchange Act). Based upon this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effective to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is: i) recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms, and (ii) accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, or person performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting, as defined in Rules 13a-15(t) and 15d-15(f) under the Exchange Act, during the three and six months ended June 30, 2023 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Legal Proceedings

None.

ITEM 1A. RISK FACTORS

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934, and are not required to provide the information under this item.

ITEM 2. RECENT SALES OF UNREGISTERED EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None.

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ITEM 6. EXHIBITS

Exhibit No.		Description
3.1*		Amended and Restated Certificate of Incorporation dated August 29, 2022
3.2*		Amended and Restated Bylaws of MGO Global Inc. dated December 28, 2022
4.1*		Form of Representative’s Warrant in connection with the Company’s initial public offering
4.2*		Form of Warrant issued to investors in private placement
4.3*		Form of Placement Agent Warrant issued in first private placement
4.4*		Form of Placement Agent Warrant issued in second private placement
10.1^††*		Trademark License Agreement between MGOTEAM 1 LLC and Leo Messi Management SL dated November 20, 2021
10.2† *		Form of 2022 Equity Incentive Plan
10.3† *		Executive Employment Agreement between MGO Global Inc. and Maximiliano Ojeda dated July 19, 2022
10.4† *		Executive Employment Agreement between MGO Global Inc. and Virginia Hilfiger dated July 19, 2022
10.5† *		Executive Employment Agreement between MGO Global Inc. and Julian Groves dated July 19, 2022
10.6† *		Executive Employment Agreement between MGO Global Inc. and Matt Harward dated October 13, 2022
10.7† *		Amended and Restated Executive Employment Agreement between MGO Global Inc. and Maximiliano Ojeda dated October 13, 2022
10.8† *		Amended and Restated Executive Employment Agreement between MGO Global Inc. and Virginia Hilfiger dated October 13, 2022
10.9† *		Amended and Restated Executive Employment Agreement between MGO Global Inc. and Julian Groves dated October 13, 2022
10.10† *		Amended and Restated Executive Employment Agreement between MGO Global Inc. and Matt Harward dated October 24, 2022
10.11†*		Amended and Restated Independent Contractor Agreement between MGO Global Inc. and Vincent Ottomanelli dated December 2, 2022
10.12*		Equity Joint Venture Contract dated August 29, 2019 among Shanghai Celebrity Import and Export Co., LTD. and MGOTEAM LLC
10.13**		Letter of Intent for acquisition of certain assets of Stand Co, LLC by MGO Global Inc., dated March 13, 2023
10.14***		Commercial license agreement between MGO Global Inc. and Stand CO LLC, dated May 11, 2023
10.15***		Consulting agreement between MGO Global Inc. and Jason Harward, dated May 11, 2023
14.1*		Code of Ethics and Business Conduct
21.1*		List of Subsidiaries
99.1*		Audit Committee Charter
99.2*		Compensation Committee Charter
99.3*		Nominating and Corporate Governance Committee Charter
31.1		Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2		Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1****		Certification of the Chief Executive Officer pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2****		Certification of the Chief Financial Officer pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS		XBRL INSTANCE DOCUMENT
101.SCH		XBRL TAXONOMY EXTENSION SCHEMA
101.CAL		XBRL TAXONOMY EXTENSION CALCULATION LINKBASE
101.DEF		XBRL TAXONOMY EXTENSION DEFINITION LINKBASE
101.LAB		XBRL TAXONOMY EXTENSION LABEL LINKBASE
101.PRE		XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE

* Incorporated by reference to the Company’s Registration Statement on Form S-1 (No. 333-268484), filed with the SEC on December 30, 2022.

^†	Executive compensation plan or arrangement.

^††	portions were redacted.

** Incorporated by reference to the Company’s Current Report on Form 8-K filed on March 17, 2023.

*** Incorporated by reference to the Company’s Quarterly Report on Form 10-Q filed on May 15, 2023.

**** Exhibits 32.1 and 32.2 are being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, nor shall such exhibits be deemed to be incorporated by reference in any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise specifically stated in such filing.

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SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	MGO GLOBAL INC.

Dated: August 14, 2023	By:	/s/ Maximiliano Ojeda
		Maximiliano Ojeda
		Chief Executive Officer and Chairman of the Board

Dated: August 14, 2023	By:	/s/ Vincent Ottomanelli
		Vincent Ottomanelli
		Chief Financial Officer

nullnullnullnull

Cover - shares	6 Months Ended
Cover - shares	Jun. 30, 2023	Aug. 11, 2023
Cover [Abstract]
Entity Registrant Name	MGO GLOBAL INC.
Entity Central Index Key	0001902794
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	true
Entity Current Reporting Status	Yes
Document Period End Date	Jun. 30, 2023
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2023
Entity Ex Transition Period	false
Entity Common Stock Shares Outstanding		14,241,541
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-41592
Entity Incorporation State Country Code	DE
Entity Tax Identification Number	87-3929852
Entity Address Address Line 1	1515 SE 17th Street
Entity Address Address Line 2	Suite 121/#460236
Entity Address City Or Town	Ft Lauderdale
Entity Address State Or Province	FL
Entity Address Postal Zip Code	33346
City Area Code	347
Local Phone Number	913-3316
Security 12b Title	Common Stock, par value $0.00001 per share
Trading Symbol	MGOL
Security Exchange Name	NASDAQ
Entity Interactive Data Current	Yes

CONDENSED CONSOLIDATED BALANCE SHEETS	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Current assets:
Cash and cash equivalents	$ 4,133,525	$ 113,952
Accounts receivable	173,589	101,837
Other current assets	15,465	7,864
Prepaid royalty expense	53,372	147,769
Prepaid expenses	559,774	0
Inventories	303,864	69,546
Total current assets	5,239,589	440,968
Property and equipment, net	115,798	0
Total assets	5,355,387	440,968
Current liabilities:
Accounts payable	480,393	648,129
Accounts payable - related party	0	22,533
Accrued Liabilities	201,293	52,540
Accrued payroll	164,238	764,050
Other current liabilities	0	13,634
Current portion of loan payable	0	10,793
Loan payable - related parties	0	123,850
Total current liabilities	845,924	1,635,529
Total liabilities	845,924	1,635,529
Commitments and contingencies	0	0
Stockholders' equity (deficit):
Common stock, par value $0.00001, authorized 20,000,000 shares; 14,241,541 and 11,689,230 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively	142	117
Additional paid in capital	13,285,669	4,963,340
Accumulated deficit	(8,292,210)	(5,796,636)
Total MGO stockholders' equity (deficit)	4,993,601	(833,179)
Non-controlling interest	(484,138)	(361,382)
Total stockholder's equity (deficit)	4,509,463	(1,194,561)
Total liabilities and stockholders' equity	$ 5,355,387	$ 440,968

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2023	Dec. 31, 2022
Stockholders' Equity
Common Stock, Par Value	$ 0.00001	$ 0.00001
Common Stock, Authorized Shares	20,000,000	20,000,000
Common Stock, Issued Shares	14,241,541	9,593,000
Common Stock, Outstanding Shares	14,241,541	11,689,230

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Sales, net	$ 1,950,938	$ 96,835	$ 2,285,639	$ 195,912
Cost of goods sold	623,117	16,593	757,129	48,266
Gross profit	1,327,821	80,242	1,528,510	147,646
Operating expenses:
Royalty expenses	320,229	320,824	628,112	664,821
Selling, general and administrative expenses	2,433,478	464,835	3,528,640	760,415
Total operating expenses	2,753,707	785,659	4,156,752	1,425,236
Operating loss	(1,425,886)	(705,417)	(2,628,242)	(1,277,590)
Other (income) expenses:
Finance charges	645	99,374	11,656	102,571
Gain on settlement of debt	0	0	(3,500)	0
Other (income) expense, net	(28,326)	(273)	(18,068)	1,082
Total other (income) expenses	(27,681)	99,101	(9,912)	103,653
Loss before income taxes	(1,398,205)	(804,518)	(2,618,330)	(1,381,243)
Net loss	(1,398,205)	(804,518)	(2,618,330)	(1,381,243)
Less: net loss attributable to noncontrolling interest	(60,687)	(83,858)	(122,756)	(149,513)
Net loss attributable to MGO stockholders	$ (1,337,518)	$ (720,660)	$ (2,495,574)	$ (1,231,730)
Basic and diluted weighted average shares outstanding	14,241,541	10,351,833	13,928,734	10,091,319
Basic and diluted net loss per share to MGO stockholders	$ (0.09)	$ (0.07)	$ (0.18)	$ (0.12)

STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY (DEFICIT) (UNAUDITED) - USD ($)	Total	Common Stock	Preferred Stock	Additional Paid-In Capital	Retained Earnings (Accumulated Deficit)	Total MGO Stockholder's Equity (deficit)	Noncontrolling Interest
Balance, shares at Dec. 31, 2021		9,593,000
Balance, amount at Dec. 31, 2021	$ (414,007)	$ 96	$ 0	$ 2,866,559	$ (3,213,690)	$ (347,036)	$ (66,971)
Share issuance for cash, shares		342,500
Share issuance for cash, amount	288,682	$ 3	0	288,679	0	288,682	0
Net loss	(576,725)	0	0	0	(511,071)	(511,071)	(65,655)
Balance, amount at Mar. 31, 2022	(702,050)	$ 99	$ 0	3,155,238	(3,724,761)	(569,425)	(132,626)
Balance, shares at Mar. 31, 2022		9,935,500	0
Balance, shares at Dec. 31, 2021		9,593,000
Balance, amount at Dec. 31, 2021	(414,007)	$ 96	$ 0	2,866,559	(3,213,690)	(347,036)	(66,971)
Net loss	(1,381,243)
Warrants issued for financing expenses	85,686
Balance, amount at Jun. 30, 2022	(607,557)	$ 108	$ 0	4,054,240	(4,445,420)	(391,073)	(216,484)
Balance, shares at Jun. 30, 2022		10,818,000
Balance, shares at Mar. 31, 2022		9,935,500	0
Balance, amount at Mar. 31, 2022	(702,050)	$ 99	$ 0	3,155,238	(3,724,761)	(569,425)	(132,626)
Share issuance for cash, shares		882,500
Share issuance for cash, amount	806,686	$ 9	0	806,677	0	806,686	0
Net loss	(804,518)	0	0	0	(720,660)	(720,660)	(83,858)
Warrants issued for financing expenses	85,686	0	0	85,686	0	85,686	0
Imputed interest	6,636	0	0	6,636	0	6,636	0
Balance, amount at Jun. 30, 2022	(607,557)	$ 108	0	4,054,240	(4,445,420)	(391,073)	(216,484)
Balance, shares at Jun. 30, 2022		10,818,000
Balance, shares at Dec. 31, 2022		11,689,230
Balance, amount at Dec. 31, 2022	(1,194,561)	$ 117	0	4,963,340	(5,796,636)	(833,179)	(361,382)
Share issuance for cash, shares		1,725,000
Share issuance for cash, amount	7,622,354	$ 17	0	7,622,337	0	7,622,354	0
Net loss	(1,220,125)	$ 0	0	0	(1,158,056)	(1,188,056)	(62,069)
Cashless exercise of warrants, shares		127,311
Cashless exercise of warrants, amount	0	$ 1	0	(1)	0	0	0
Cash received from exercise of warrants, shares		700,000
Cash received from exercise of warrants, amount	700,000	$ 7	0	699,993	0	700,000	0
Balance, amount at Mar. 31, 2023	5,907,668	$ 142	0	13,285,669	(6,954,692)	6,301,119	(423,451)
Balance, shares at Mar. 31, 2023		14,241,541
Balance, shares at Dec. 31, 2022		11,689,230
Balance, amount at Dec. 31, 2022	(1,194,561)	$ 117	0	4,963,340	(5,796,636)	(833,179)	(361,382)
Net loss	(2,618,330)
Warrants issued for financing expenses	0
Balance, amount at Jun. 30, 2023	4,509,463	$ 142	0	13,285,669	(8,292,210)	4,993,600	(484,138)
Balance, shares at Jun. 30, 2023		14,241,541
Balance, shares at Mar. 31, 2023		14,241,541
Balance, amount at Mar. 31, 2023	5,907,668	$ 142	0	13,285,669	(6,954,692)	6,301,119	(423,451)
Net loss	(1,398,205)	0	0	0	(1,337,518)	(1,337,518)	(60,687)
Balance, amount at Jun. 30, 2023	$ 4,509,463	$ 142	$ 0	$ 13,285,669	$ (8,292,210)	$ 4,993,600	$ (484,138)
Balance, shares at Jun. 30, 2023		14,241,541

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities:
Net loss	$ (2,618,330)	$ (1,381,243)
Adjustments to reconcile net loss to net cash used in operating activities:
Imputed interest	0	6,636
Warrants issued for financing expenses	0	85,686
Depreciation expenses	21,817	0
Net changes in operating assets & liabilities:
Accounts receivable	(71,752)	(18,770)
Inventories	(234,318)	(21,909)
Prepaid expenses	(559,774)	0
Prepaid royalty expense	94,397	137,839
Other current assets	(7,601)	0
Accounts payable - related party	(22,533)	0
Accrued payroll	(599,812)	0
Accounts payable and accrued liabilities	(28,422)	236,333
Net cash used in operating activities	(4,026,327)	(955,428)
Cash flows from investing activities:
Purchases of property, plant, and equipment	(137,614)	0
Net cash used in investing activities	(137,614)	0
Cash flows from financing activities:
Shares issued for cash	7,622,354	1,095,371
Cash received from exercise of warrants	700,000	0
Repayment of loans payable - related party	(128,047)	(3,026)
Repayment of loans payable	(10,793)	(36,341)
Borrowings from loans payable - related party	0	13,489
Borrowings from loans payable		25,000
Net cash provided by financing activities	8,183,514	1,094,493
Net increase in cash and cash equivalents	4,019,573	139,065
Cash and cash equivalents at beginning of period	113,952	87,922
Cash and cash equivalents at end of period	$ 4,133,525	$ 226,987

ORGANIZATION AND OPERATIONS

6 Months Ended

Jun. 30, 2023

ORGANIZATION AND OPERATIONS

ORGANIZATION AND OPERATIONS

NOTE 1 - ORGANIZATION AND OPERATIONS

The Messi Store/MGOTEAM1 LLC

Stand Flagpoles/Americana Liberty, LLC

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2023

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

Principles of Consolidation

Use of Estimates

Cash and Cash Equivalents

Accounts Receivable

Inventory

Prepaid Royalty Expense

Property and Equipment, net

Classification	Useful Life
Computer	3 years
Equipment	3 years
Internal use software	3 years

Revenue Recognition

	·	For the six months ended June 30, 2023, the Company sold $2,241,113 directly to consumers via our website and $44,526 to wholesale and other customers.
	·	For the six months ended June 30, 2022, the Company sold $140,010 directly to consumers via our website and $55,902 to wholesale and other customers.

The Messi Store/MGOTEAM1, LLC

We sold our Messi Brand products direct to consumers through The Messi Store ecommerce website we operate and through The Messi Store mobile app; and we sold products to wholesale customers.

Stand Flagpoles/Americana Liberty,LLC

A principal obtains control over any one of the following (ASC 606-10-55-37A):

	a.	A good or another asset from the other party which the entity then transfers to the customer. Note that momentary control before transfer to the customer may not qualify.
	b.	A right to a service to be performed by the other party, which gives the entity the ability to direct that party to provide the service to the customer on the entity’s behalf.
	c.	A good or service from the other party that it then combines with other goods or services in providing the specified good or service to the customer.

Non-controlling Interest

Foreign Currency

For all operations, gains or losses from remeasuring foreign currency transactions into the functional currency are included in the statements of operations as finance charges.

Segment Reporting

Income Taxes

New Accounting Pronouncements

BALANCE SHEET ITEMS

6 Months Ended

Jun. 30, 2023

BALANCE SHEET ITEMS

BALANCE SHEET ITEMS

NOTE 3 – BALANCE SHEET ITEMS

Inventory

As of June 30, 2023 and December 31, 2022, inventory amounted to $303,864 and $69,546, respectively.

		June 30, 2023				December 31, 2022
Finished goods		$	303,864			$	69,546

Prepaid Expenses

As of June 30, 2023 and December 31, 2022, prepaid expenses amounted to $559,774 and $0, respectively.

	June 30, 2023		December 31, 2022
Prepaid inventory	$	317,253	$	-
Prepaid insurance		189,188		-
Others		53,333		-
Total	$	559,774	$	-

Accounts Payable and Accrued Liabilities (Including Related Parties)

	June 30, 2023		December 31, 2022
Accounts payable	$	332,719	$	275,551
Warehouse rent payable		26,082		78,673
Legal payable		-		316,438
Insurance payable		121,592		-
Accrued liabilities		201,293		52,540
Total accounts payable and accrued liabilities:	$	681,686	$	723,202

LOAN PAYABLE

6 Months Ended

Jun. 30, 2023

LOAN PAYABLE

LOAN PAYABLE

NOTE 4 – LOAN PAYABLE

	June 30, 2023		December 31, 2022
Current portion of loans payable	$	-	$	10,793
Non-current portion of loans payable	$	-	$	-

RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2023

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

NOTE 5 – RELATED PARTY TRANSACTIONS

The accounts payable owed to our Chairman and CEO as of June 30, 2023 and December 31, 2022 were $0 and $22,533, respectively.

STOCKHOLDERS EQUITY DEFICIT

6 Months Ended

Jun. 30, 2023

STOCKHOLDERS EQUITY DEFICIT

STOCKHOLDERS' EQUITY DEFICIT

NOTE 6 – STOCKHOLDERS’ DEFICIT

Common Stock

In January 2023, the Company issued 700,000 shares to the Pre-IPO funding investors from the exercise of their warrants at fair value of $1 per share.

In January 2023, the Company issued 127,311 shares to Boustead Securities, LLC as a result of the cashless exercise of their 164,475 warrants.

On January 13, 2023, in connection with the Offering, the Company commenced trading on The Nasdaq Capital Market under ticker symbol “MGOL.”

Warrants

In January 2023, the Company issued 700,000 shares to the Pre-IPO funding investors in connection with the exercise of their warrants at fair value of $1 per share.

In January 2023, the Company issued 127,311 shares to Boustead Securities, LLC as a result of the cashless exercise of their 164,475 warrants.

The following is a summary of warrant activity.

	Number of Warrants			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value
Outstanding, December 31, 2022		938,000		$	1.00		3.73	$	—
Issued		86,250			1.00		5.00		—
Forfeited		—			—		—		—
Exercised		(864,475	)		—		—		—
Outstanding, June 30, 2023		159,775		$	1.00		4.14	$	—
Exercisable, June 30, 2023		159,775		$	1.00		4.14	$	—

The Company utilizes the Black-Scholes model to value its warrants. The Company utilized the following assumptions:

	For the Six Months Ended June 30, 2023
Expected term	5 years
Stock price	$	1.00
Exercise price	$	1.00
Expected average volatility	328% - 339 %
Expected dividend yield		-
Risk-free interest rate	1.76% - 2.89 %

PREPAID ROYALTY EXPENSE

6 Months Ended

Jun. 30, 2023

PREPAID ROYALTY EXPENSE

PREPAID ROYALTY EXPENSE

NOTE 7 –PREPAID ROYALTY EXPENSE

As of June 30, 2023, the Company has paid LMM royalty payments, in aggregate, equal to Two Million Euros (€2,000,000) pursuant to the terms of the New Trademark License Agreement.

The following table presents the future royalty payments of the Trademark License Agreement based on exchange rate as of June 30, 2023:

Fiscal year ending December 31,	Amount
		US Dollars	Euros
2023	$	546,000	(€500,000)
2024		1,638,000	(€1,500,000)
Total	$	2,184,000	(€2,000,000)

LEASES

6 Months Ended

Jun. 30, 2023

LEASES

LEASES

NOTE 8 – LEASES

RISKS AND UNCERTAINTIES

6 Months Ended

Jun. 30, 2023

RISKS AND UNCERTAINTIES

RISKS AND UNCERTAINTIES

NOTE 9 – RISKS AND UNCERTAINTIES

SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2023

SEGMENT INFORMATION

SEGMENT INFORMATION

NOTE 10 – SEGMENT INFORMATION

Non-allocated administrative and other expenses are reflected in Corporate. Corporate assets include cash, prepaid expenses, notes receivable and other assets.

As of June 30, 2023 and December 31, 2022, and for the three and six months ended June 30, 2023 and 2022, respectively, information about the Company’s reportable segments consisted of the following:

Assets

	Corporate		The Messi Store		Stand Flagpoles		Total
As of June 30, 2023
Assets	$	4,188,327	$	341,046	$	826,014	$	5,355,387
As of December 31, 2022
Assets	$	32,275	$	408,693	$	-	$	440,968

Net (Loss) Income

	Corporate			The Messi Store			Stand Flagpoles			Total
Three Months Ended June 30, 2023
Revenues	$	-		$	226,645		$	1,724,293		$	1,950,938
Cost of sales		-			114,256			508,861			623,117
Loss from operations		(764,210	)		(513,501	)		(148,175	)		(1,425,886	)
Other (income) expense, net		(26,124	)		(1,557	)		-			(27,681	)
Net income (loss)	$	(738,086	)	$	(511,944	)	$	(148,175	)	$	(1,398,205	)

Three Months Ended June 30, 2022
Revenues	$	-		$	96,835		$	-		$	96,835
Cost of sales		-			16,593			-			16,593
Loss from operations		(30,909	)		(674,508	)		-			(705,417	)
Other (income) expense, net		92,322			6,779			-			99,101
Net income (loss)	$	(123,231	)	$	(681,287	)	$	-		$	(804,518	)

	Corporate			The Messi Store			Stand Flagpoles			Total
Six Months Ended June 30, 2023
Revenues	$	-		$	516,199		$	1,769,440		$	2,285,639
Cost of sales		-			230,659			526,470			757,129
Income (loss) from operations		(1,467,311	)		(1,021,294	)		(139,637	)		(2,628,241	)
Other (income) expense, net		(25,680	)		15,768			-			(9,911	)
Net income (loss)	$	(1,441,631	)	$	(1,037,062	)	$	(139,637	)	$	(2,618,330	)

Six Months Ended June 30, 2022
Revenues	$	-		$	195,912		$	-		$	195,912
Cost of sales		-			48,266			-			48,266
Loss from operations		(52,179	)		(1,225,410	)		-			(1,277,589	)
Other (income) expense, net		92,322			11,332			-			103,654
Net income (loss)	$	(144,501	)	$	(1,236,742	)	$	-		$	(1,381,243	)

SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2023

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

NOTE 11 – SUBSEQUENT EVENTS

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2023

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis Of Presentation

Principles Of Consolidation

Use Of Estimates

Cash and Cash Equivalents

Accounts Receivable

Inventory

Prepaid Royalty Expense

Property and Equipment, net

Classification	Useful Life
Computer	3 years
Equipment	3 years
Internal use software	3 years

Revenue Recognition

	·	For the six months ended June 30, 2023, the Company sold $2,241,113 directly to consumers via our website and $44,526 to wholesale and other customers.
	·	For the six months ended June 30, 2022, the Company sold $140,010 directly to consumers via our website and $55,902 to wholesale and other customers.

The Messi Store/MGOTEAM1, LLC

We sold our Messi Brand products direct to consumers through The Messi Store ecommerce website we operate and through The Messi Store mobile app; and we sold products to wholesale customers.

Stand Flagpoles/Americana Liberty,LLC

A principal obtains control over any one of the following (ASC 606-10-55-37A):

	a.	A good or another asset from the other party which the entity then transfers to the customer. Note that momentary control before transfer to the customer may not qualify.
	b.	A right to a service to be performed by the other party, which gives the entity the ability to direct that party to provide the service to the customer on the entity’s behalf.
	c.	A good or service from the other party that it then combines with other goods or services in providing the specified good or service to the customer.

Non-controlling interest

Foreign currency

For all operations, gains or losses from remeasuring foreign currency transactions into the functional currency are included in the statements of operations as finance charges.

Segment Reporting

Income Taxes

New Accounting Pronouncements

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2023

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Schedule of estimated useful lives

Classification	Useful Life
Computer	3 years
Equipment	3 years
Internal use software	3 years

BALANCE SHEET ITEMS (Tables)

6 Months Ended

Jun. 30, 2023

BALANCE SHEET ITEMS

Schedule Of Inventory

		June 30, 2023				December 31, 2022
Finished goods		$	303,864			$	69,546

Schedule Of Prepaid Expenses

	June 30, 2023		December 31, 2022
Prepaid inventory	$	317,253	$	-
Prepaid insurance		189,188		-
Others		53,333		-
Total	$	559,774	$	-

Schedule Of Accounts payable and accrued liabilities

	June 30, 2023		December 31, 2022
Accounts payable	$	332,719	$	275,551
Warehouse rent payable		26,082		78,673
Legal payable		-		316,438
Insurance payable		121,592		-
Accrued liabilities		201,293		52,540
Total accounts payable and accrued liabilities:	$	681,686	$	723,202

LOAN PAYABLE (Tables)

6 Months Ended

Jun. 30, 2023

LOAN PAYABLE

Schedule Of LOAN PAYABLE

	June 30, 2023		December 31, 2022
Current portion of loans payable	$	-	$	10,793
Non-current portion of loans payable	$	-	$	-

STOCKHOLDERS DEFICIT (Tables)

6 Months Ended

Jun. 30, 2023

STOCKHOLDERS EQUITY DEFICIT

Schedule Of summary of warrant activity

	Number of Warrants			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value
Outstanding, December 31, 2022		938,000		$	1.00		3.73	$	—
Issued		86,250			1.00		5.00		—
Forfeited		—			—		—		—
Exercised		(864,475	)		—		—		—
Outstanding, June 30, 2023		159,775		$	1.00		4.14	$	—
Exercisable, June 30, 2023		159,775		$	1.00		4.14	$	—

Schedule Of Company utilizes the Black-Scholes model to value its warrants

	For the Six Months Ended June 30, 2023
Expected term	5 years
Stock price	$	1.00
Exercise price	$	1.00
Expected average volatility	328% - 339 %
Expected dividend yield		-
Risk-free interest rate	1.76% - 2.89 %

PREPAID ROYALTY EXPENSE (Tables)

6 Months Ended

Jun. 30, 2023

PREPAID ROYALTY EXPENSE

Schedule of future royalty payments

Fiscal year ending December 31,	Amount
		US Dollars	Euros
2023	$	546,000	(€500,000)
2024		1,638,000	(€1,500,000)
Total	$	2,184,000	(€2,000,000)

SEGMENT INFORMATION (Tables)

6 Months Ended

Jun. 30, 2023

SEGMENT INFORMATION

Schedule Of Segment Information Assets

	Corporate		The Messi Store		Stand Flagpoles		Total
As of June 30, 2023
Assets	$	4,188,327	$	341,046	$	826,014	$	5,355,387
As of December 31, 2022
Assets	$	32,275	$	408,693	$	-	$	440,968

	Corporate			The Messi Store			Stand Flagpoles			Total
Three Months Ended June 30, 2023
Revenues	$	-		$	226,645		$	1,724,293		$	1,950,938
Cost of sales		-			114,256			508,861			623,117
Loss from operations		(764,210	)		(513,501	)		(148,175	)		(1,425,886	)
Other (income) expense, net		(26,124	)		(1,557	)		-			(27,681	)
Net income (loss)	$	(738,086	)	$	(511,944	)	$	(148,175	)	$	(1,398,205	)

Three Months Ended June 30, 2022
Revenues	$	-		$	96,835		$	-		$	96,835
Cost of sales		-			16,593			-			16,593
Loss from operations		(30,909	)		(674,508	)		-			(705,417	)
Other (income) expense, net		92,322			6,779			-			99,101
Net income (loss)	$	(123,231	)	$	(681,287	)	$	-		$	(804,518	)

	Corporate			The Messi Store			Stand Flagpoles			Total
Six Months Ended June 30, 2023
Revenues	$	-		$	516,199		$	1,769,440		$	2,285,639
Cost of sales		-			230,659			526,470			757,129
Income (loss) from operations		(1,467,311	)		(1,021,294	)		(139,637	)		(2,628,241	)
Other (income) expense, net		(25,680	)		15,768			-			(9,911	)
Net income (loss)	$	(1,441,631	)	$	(1,037,062	)	$	(139,637	)	$	(2,618,330	)

Six Months Ended June 30, 2022
Revenues	$	-		$	195,912		$	-		$	195,912
Cost of sales		-			48,266			-			48,266
Loss from operations		(52,179	)		(1,225,410	)		-			(1,277,589	)
Other (income) expense, net		92,322			11,332			-			103,654
Net income (loss)	$	(144,501	)	$	(1,236,742	)	$	-		$	(1,381,243	)

ORGANIZATION AND OPERATIONS (Details Narrative) - USD ($)	1 Months Ended	6 Months Ended
	Nov. 20, 2021	Jun. 30, 2023	Oct. 24, 2024	Sep. 30, 2023
ORGANIZATION AND OPERATIONS
Available funds in cash			$ 200,000	$ 150,000
Amount of minimum guaranteed royalties	$ 4,000,000
Restricted stock units		150,000

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	6 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	Jun. 30, 2023
Equipment [Member]
Useful Life	3 years
Computer [Member]
Useful Life	3 years
Internal use software [Member]
Useful Life	3 years

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)		3 Months Ended		6 Months Ended
	Dec. 06, 2021 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2023 EUR (€)	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)	Nov. 20, 2021 EUR (€)
Certificate of deposit		$ 1,250,000		$ 1,250,000			$ 0
Membership interest	11.82%	3.92%		3.92%
Prepaid Royalty Expense		$ 53,372		$ 53,372			$ 147,769	€ 500,000
Non-controlling interest	$ 12,598	(60,687)	$ (83,858)	(122,756)		$ (149,513)
Revenue		$ 1,950,938	$ 96,835	2,285,639		195,912
Wholesale customers [Member]
Revenue					€ 2,241,113,000,000	140,010,000,000
Direct to consumers [Member]
Revenue				$ 44,526		$ 55,902

BALANCE SHEET ITEMS (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
BALANCE SHEET ITEMS
Finished goods	$ 303,864	$ 69,546

BALANCE SHEET ITEMS (Details 1) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
BALANCE SHEET ITEMS
Prepaid inventory	$ 317,253	$ 0
Prepaid insurance	189,188	0
Others	53,333	0
Total	$ 559,774	$ 0

BALANCE SHEET ITEMS (Details 2) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
BALANCE SHEET ITEMS
Accounts payable	$ 332,719	$ 275,551
Warehouse rent payable	26,082	78,673
Legal payable	0	316,438
Insurance payable	121,592	0
Accrued liabilities	201,293	52,540
Total accounts payable and accrued liabilities	$ 681,686	$ 723,202

BALANCE SHEET ITEMS (Details Narrative) - USD ($)	1 Months Ended
BALANCE SHEET ITEMS (Details Narrative) - USD ($)	Jan. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Inventory		$ 303,864	$ 69,546
Prepaid expenses		559,774	0
Accounts payable and accrued liabilities		681,686	$ 723,202
Note Payable [Member]
Principle amount	$ 284,775
Monthly payment	$ 32,438
Note payable		$ 121,592
Interest rate	6.00%

LOAN PAYABLE (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
LOAN PAYABLE
Current portion of loans payable	$ 0	$ 10,793
Non-current portion of loans payable	$ 0	$ 0

LOAN PAYABLE (Details Narrative) - USD ($)	1 Months Ended
LOAN PAYABLE (Details Narrative) - USD ($)	May 25, 2022	Jun. 30, 2023	Dec. 31, 2022
Principle amount		$ 10,793
Loan payable		$ 0	$ 0
Loan payable [Member]
Principle amount	$ 25,000
Interest rate	6.51%
Maturity date	May 25, 2023
Monthly payment	$ 539

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022	Oct. 24, 2024	Sep. 30, 2023
Available funds in cash			$ 200,000	$ 150,000
Accounts receivable/(payable) owed to - related party	$ 0	$ (22,533)
Restricted stock units	150,000
Chairman and CEO [Member]
Proceed from related party		45,556
Paid to related party		24,976
Mr. Ojeda, Mr. Groves, and Ms. Hilfiger [Member]
Proceed from related party	$ 0
Paid to related party	128,047
Loan payble to related party	$ 0	$ 123,850

STOCKHOLDERS DEFICIT (Details)	6 Months Ended
STOCKHOLDERS DEFICIT (Details)	Jun. 30, 2023 $ / shares shares
STOCKHOLDERS EQUITY DEFICIT
Number of warrants, beginning balance \| shares	938,000
Number of warrants, issued \| shares	86,250
Number of warrants, Forfeited \| shares	0
Number of warrants, Exercised \| shares	(864,475)
Number of warrants, ending balance \| shares	159,775
Number of warrant Exercisable \| shares	159,775
Weighted average exercise price, beginnning balance \| $ / shares	$ 1.00
Weighted average exercise price, issued \| $ / shares	1.00
Weighted average exercise price, Forfeited \| $ / shares	0
Weighted average exercise price, Exercised \| $ / shares	0
Weighted average exercise price, ending balance \| $ / shares	1.00
Weighted average exercise price, exercisable \| $ / shares	$ 1.00
Weighted average remining contractual life, beginning balance	3 years 8 months 23 days
Weighted average remining contractual life, issued	5 years
Weighted average remining contractual life, ending balance	4 years 1 month 20 days
Weighted average remining contractual life, Exercisable	4 years 1 month 20 days

STOCKHOLDERS DEFICIT (Details 1)	6 Months Ended
STOCKHOLDERS DEFICIT (Details 1)	Jun. 30, 2023 $ / shares
Expected term	5 years
Stock price	$ 1
Exercise price	$ 1
Expected dividend yield	0.00%
Minimum [Member]
Expected average volatility	328.00%
Risk-free interest rate	1.76%
Maximum [Member]
Expected average volatility	339.00%
Risk-free interest rate	2.89%

STOCKHOLDERS DEFICIT (Details Narrative) - USD ($)		1 Months Ended	6 Months Ended	12 Months Ended
STOCKHOLDERS DEFICIT (Details Narrative) - USD ($)	Jan. 12, 2023	Jan. 31, 2023	Jun. 30, 2023	Dec. 31, 2021	Dec. 31, 2022
Initial pubic offering	1,725,000
Common Stock, Par Value	$ 0.00001		$ 0.00001		$ 0.00001
Additional shares purchased	225,000
Offering price	$ 5.00
Non-controlling description	Pursuant to the Underwriting Agreement, in exchange for the Representative’s firm commitment to purchase the Shares, the Company agreed to sell the Shares to the Representative at a purchase price of $4.65 (93% of the public offering price per Share of $5.00) and issue the underwriters three year warrants to purchase an aggregate of 86,250 shares of the Company’s common stock, which is equal to five percent (5%) of the Shares sold in the Offering. Such warrants have an exercise price of $6.25, which is equal to 125% of the Offering price (the “Warrant”)
Net proceeds	$ 7,622,355
Shares sold	225,000
Issued shares, shares			14,241,541	11,689,230
Issued shares , amount			$ 13,285,669	$ 4,963,340
Investors [Member]
Issued shares, shares		700,000
Exercise price		$ 1
Boustead Securities, LLC [Member]
Issued shares of the cashless exercise		127,311
Cashless exercise of warrants		164,475
Warrants [Member] \| Investors [Member]
Issued shares, shares		700,000
Exercise price		$ 1
Warrants [Member] \| Boustead Securities, LLC [Member]
Issued shares of the cashless exercise		127,311
Cashless exercise of warrants		164,475

PREPAID ROYALTY EXPENSE (Details )	Jun. 30, 2023 EUR (€)
Future Royalty Payments	€ 2,184,000
Fiscal year ending December 31, 2023
Future Royalty Payments	546,000
Fiscal year ending December 31, 2024
Future Royalty Payments	€ 1,638,000

PREPAID ROYALTY EXPENSE (Details Narrative)	1 Months Ended	3 Months Ended		6 Months Ended
PREPAID ROYALTY EXPENSE (Details Narrative)	Nov. 20, 2021 EUR (€)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 EUR (€)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
PREPAID ROYALTY EXPENSE
Prepaid expenses		$ 53,372			$ 53,372		$ 147,769
Prepaid Royalty expenses		$ 320,229	$ 320,824		$ 628,112	$ 664,821
Royalty payble \| €	€ 4,000,000			€ 2,000,000

LEASES (Details Narrative)	1 Months Ended
LEASES (Details Narrative)	Feb. 20, 2023 ft²
LEASES
Space for office	2,300

SEGMENT INFORMATION (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Assets	$ 5,355,387	$ 440,968
Corporate [Member]
Assets	4,188,327	32,275
The Messi Store [Member]
Assets	341,046	408,693
Stand Flagpoles [Member]
Assets	$ 826,014	$ 0

SEGMENT INFORMATION (Details 1) - USD ($)	3 Months Ended				6 Months Ended
SEGMENT INFORMATION (Details 1) - USD ($)	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenues	$ 1,950,938		$ 96,835		$ 2,285,639	$ 195,912
Cost of sales	623,117		16,593		757,129	48,266
Loss from operations	(1,425,886)		(705,417)		2,628,241	(1,277,589)
Other (income) expense, net	(27,681)		99,101		(9,911)	103,654
Net loss	(1,398,205)	$ (1,220,125)	(804,518)	$ (576,725)	(2,618,330)	(1,381,243)
Corporate [Member]
Revenues	0		0		0	0
Cost of sales	0		0		0	0
Loss from operations	(764,210)		(30,909)		(1,467,311)	(52,179)
Other (income) expense, net	(26,124)		92,322		(25,680)	92,322
Net loss	(738,086)		(123,231)		(1,441,631)	(144,501)
The Messi Store [Member]
Revenues	226,645		96,835		516,199	195,912
Cost of sales	114,256		16,593		230,659	48,266
Loss from operations	(513,501)		(674,508)		(1,021,294)	(1,225,410)
Other (income) expense, net	(1,557)		6,779		15,768	11,332
Net loss	(511,944)		681,287		(1,037,062)	(1,236,742)
Stand Flagpoles [Member]
Revenues	1,724,293		0		1,769,440	0
Cost of sales	508,861		0		526,470	0
Loss from operations	(148,175)		0		(139,637)	0
Other (income) expense, net	0		0		0	0
Net loss	$ (148,175)		$ 0		$ (139,637)	$ 0

SUBSEQUENT EVENTS (Details Narratives) - Subsequent Event Member	Aug. 01, 2023 $ / shares shares
Stock options exercised \| $ / shares	$ 5.00
Stock options maturity date	Jan. 12, 2028
Stock options granted	1,355,000
Restricted stock unit, shares	290,000

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